Study Shows Public Sector Organizations are Leading in Multicloud Adoption

Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced the public sector findings of its global 2022 Enterprise Cloud Index (ECI) survey and research report, which measures enterprise progress with cloud adoption, including the U.S. federal government and global public education sub-sectors. The research showed that more public sector organizations than average have adopted multicloud as a primary IT operating model, outpacing the global average. Adoption is expected to nearly double from 39% to 67% in the next three years.

Multicloud is on the rise and is now the dominant IT architecture in use worldwide, and it's also dominant across the public sector. In fact, the global public education sub-sector reported the largest usage among all ECI respondents (69%), with adoption nearly twice the global average. The U.S. federal sub-sector is also well ahead of the average, with 47% having adopted multicloud. However, the complexity of managing across cloud borders remains a major challenge for public sector organizations as 85% agreed that to succeed, their organizations need to simplify the management of multiple clouds. To address top challenges related to cost, security, interoperability, and data integration, 75% agree that a hybrid multicloud model, an IT operating model with multiple clouds both private and public with interoperability between, is ideal.

"The evolution to a multicloud IT infrastructure that spans a mix of private and public clouds is underway across the globe, with the public sector on the fast track," said Chip George, VP of Public Sector at Nutanix. "This evolution requires a dedication to inherent, strong platform security to fully execute on the multicloud vision and extend capabilities from the core to the tactical edge. Public sector organizations must look to hybrid multicloud solutions that meet security requirements while delivering visibility, manageability, and consistent policy-enforcement coupled with tight cost control across environments."

Public sector survey respondents were asked about their current cloud challenges, how they're running business and mission-critical applications now, and where they plan to run them in the future. Respondents were also asked about the impact of the pandemic on recent, current, and future IT infrastructure decisions and how IT strategy and priorities may change because of it. Key findings from this year's report:

• Public sector organizations face multicloud challenges, including securing their data across multiple clouds (49%), application mobility (47%), security (46%) and managing costs (45%). Additionally, given that nearly all (97%) of U.S. federal, 86% of public education, and 87% of all global public sector organizations cited they lack some IT skills to meet current business demands, simplifying operations is likely to be a key focus for many in the year ahead. However, IT leaders are realizing that there is no one-size-fits-all approach to the cloud, making hybrid multicloud ideal according to the majority of respondents (75%). This model will help address some of the key challenges of multicloud deployments by providing a unified cloud environment on which security and data governance policies can be applied uniformly.
• Public sector organizations are optimistic about application mobility. Application mobility is a critical multicloud and cloud-smart optimization enabler, and while 75% of public sector organizations moved one or more applications to a new IT environment over the last year, it's well below the average across industries (91%). Those that did cited improving security and/or meeting regulatory requirements (33%), gaining control (31%), and performance (30%) as the top drivers. Moreover, 76% agreed that moving a workload to a new cloud environment can be costly and time-consuming, versus 80% of all respondents across industries, indicating that application mobility is perceived to be slightly less problematic. Public education organizations, which are ahead of the multicloud curve, were even more optimistic with only 56% agreeing on difficulty of application mobility while U.S. federal organizations had the highest level of concern, with 77% agreeing.
• Top public sector IT priorities for the next 12 to 18 months include improving security posture (46%), storage (41%), 5G implementation (39%), and improving multicloud management (39%). Global public sector respondents also said that the ongoing pandemic spurred them to increase their IT spending in certain areas that emphasize bolstering their security posture (55%), implementing AI-based self-service technology (50%), and upgrading existing IT infrastructure (40%).

In Thailand in May 2019, the government's central cloud service or GOV Cloud was created to serve as a center for facilitating data connection between the government sector, business sector and the public sector. In addition, there is a Government Data Center and Cloud service (GDCC) project which aims to create a centralized, standardized, and highly secure virtual server computer service for government agencies which their challenges are lack of readiness to maintain data centers and specialized skilled personnel. This project is also aims to provide training in cloud computing capabilities, how it works and how to deploy the cloud safely and efficiently.

For the fourth consecutive year, Vanson Bourne conducted research on behalf of Nutanix, surveying 1,700 IT decision-makers around the world in August and September 2021. This report is supplemental to the global Fourth Annual Enterprise Cloud Index master report and focuses on cloud deployment and planning trends in the public sector, based on the responses of 491 IT professionals in that market. It compares public sector and sub-sector cloud plans, priorities, and experiences to each other, as well as to other industries and the global response base overall. Findings in this report attributed to "public sector organizations" or "global public sector" include respondents in worldwide federal, centralized, and local government; public education; and public healthcare organizations. U.S. federal government and global public education sub-sector findings are broken out separately, where specified, for comparison purposes.

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